[Congressional Record (Bound Edition), Volume 156 (2010), Part 1]
[Extensions of Remarks]
[Pages 1292-1293]
[From the U.S. Government Publishing Office, www.gpo.gov]




                   THE RENEWABLE ENERGY EXPANSION ACT

                                 ______
                                 

                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                       Thursday, February 4, 2010

  Mr. BLUMENAUER. Madam Speaker, the impacts of a changing climate are 
far-reaching, representing a threat not only to our natural ecosystems 
but to our national security as well. To help avoid the worst effects 
of carbon pollution, consumers must have a dependable supply of energy 
that is clean, renewable, and American. The right combination of tax 
incentives, regulatory changes, and investment in research and 
development for cleaner energy can expand the renewable energy market, 
put renewable energy on an equal footing with traditional fossil fuels, 
and create good domestic jobs in the clean energy industry.
  During the economic crisis, renewable energy investors were unable to 
take advantage of tax credits offered by the federal government to spur 
renewable energy investment and production. For example, many industry 
analysts anticipated that in 2009 wind power development would drop by 
as much as 50% from 2008 levels, with equivalent job losses.
  To avoid this outcome, the federal government shifted its tax credit 
contribution to these projects into cash grants for qualifying 
projects. This program was extremely successful: in 2009, as a result 
of these policies, the U.S. wind industry broke all previous records by 
installing nearly 10,000 megawatts of new generating capacity in 2009. 
Other renewable energy providers reported similar gains.
  This grant program expires on December 31, 2010. The legislation that 
l am introducing today, the Renewable Energy Expansion Act, will ensure 
that these benefits are not lost and will ensure that consumers 
continue to gain better access to sources of clean, renewable energy.
  The Renewable Energy Expansion Act allows taxpayers to elect to 
receive a tax credit that functions as a direct payment for investing 
in or producing renewable energy. The amount of the payment is tailored 
to equal the subsidy provided under the American Recovery and 
Reinvestment Act's energy grant program. The legislation provides 
taxpayers the option to receive this new credit or to use the ARRA-
created grant program, depending on which program best matches their 
needs. The legislation also ensures the smooth continuation of our 
underlying commitment to clean, renewable energy by carrying forward 
existing guidance and making technical changes to improve the 
underlying program. Finally, the legislation extends the credit until 
January 1, 2013.
  The legislation makes several technical improvements to the 
underlying grant program. First, it eliminates an unintended 
consequence of the normalization rules that limited the ability of 
regulated utilities to develop renewable power facilities, even if the 
project otherwise met the prudency tests required by their public 
utilities commissions. I look forward to seeing added renewable power 
capacity in my state as a result.
  Second, the legislation also improves the investment climate for 
renewable projects by streamlining access to these investments by 
investment funds with tax-exempt investors. The proportional 
disallowance rules that are part of the legislation provide an 
important balance between protecting federal investments while opening 
up increased sources of development capital for renewable power 
developers. In that same vein, this legislation adopts changes that 
will increase the ability for real estate investment trusts to access

[[Page 1293]]

these investments and I look forward to an expanding pool of investment 
capital for these projects in the future.
  Finally, it is important to emphasize that the regulatory guidance 
that has been developed under the American Revitalization and Recovery 
Act's section 1603 grant program will be adopted by this legislation. 
It is important for the renewable energy industry--and for the 
investment community that supports it--to have certainty in the nature 
of the federal commitment. Having built a smoothly functioning guidance 
structure under the 1603 program, it provides no benefit to unsettle 
that understanding. It is my expectation that within 60 days of the 
enactment of this legislation the Treasury Department will issue 
guidance integrating the existing guidance into this new framework.
  This legislation will help transition America to a clean energy 
economy. I look forward to working with my colleagues to realize that 
goal.

                          ____________________